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(Solved): On December 31,2020 , Dyer Inc. completed its first year of operations. Becau ...



On December 31,2020 , Dyer Inc. completed its first year of operations. Because this is the end of the annual accounting periRequired:
1. Prepare adjusting journal entry for each item (a) through \( (g) \) should be recorded at December 31,2020 . (If2. Prepare, in proper form, an adjusted income statement for 2020 .???????

On December 31,2020 , Dyer Inc. completed its first year of operations. Because this is the end of the annual accounting period, the company bookkeeper prepared the following preliminary income statement: You are an independent CPA hired by the company to audit the firm's accounting systems and financial statements. In your audit, you developed additional data as follows: a. Wages for the last three days of December amounting to \( \$ 480 \) were not recorded or paid. b. The \( \$ 655 \) telephone bill for December 2020 has not been recorded or paid. c. Depreciation on rental autos, amounting to \( \$ 24,700 \) for 2020 , was not recorded. d. Interest of \( \$ 1,350 \) was not recorded on the note payable by Dyer Inc. e. The Rental revenue account includes \( \$ 4,680 \) of revenue that will be earned in January 2021. f. Maintenance supplies costing \( \$ 940 \) were used during 2020 , but this has not yet been recorded. g. The income tax expense for 2020 is \( \$ 12,100 \), but it won't actually be paid until 2021 . Required: 1. Prepare adjusting journal entry for each item (a) through \( (g) \) should be recorded at December 31,2020 . (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Note: Enter debits before credits. 2. Prepare, in proper form, an adjusted income statement for 2020 .


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Solution : Requirement 1 : Adjustment entries : Transaction General Journal Debt Credit a Salaries And Wages Expense $ 480 Salaries And Wages Payable
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